Behavior Based Manipulation: Theory and Prosecution Evidence' Jianping Mei New York University Guojun Wu University of Michigan Chunsheng Zhou Peking University This Version:April 7,2004 We are grateful to helpful discussions with Franklin Allen and Wei Xiong.Mei is from Department of Finance,Stern School of Business,New York University,44 West 4th Street,New York,NY 10012-1126; (212)998-0354;jmei@stern.nyu.edu.Wu is from School of Business,University of Michigan,701 Tappan Street,Ann Arbor,MI 48109;Phone:(734)936-3248;Fax:(734)936-0274;Email: gjwu@umich.edu.Zhou is from Guanghua School of Management,Peking University,Beijing 100871, China;Email:zhoucs@gsm.pku.edu.cn.We also thank Bin Liu,Jiagi Tang and Xuewu Wang for able research assistance.Zhou acknowledges generous financial support from the National Science Foundation of China(grant 70325001/G0206). 00 Behavior Based Manipulation: Theory and Prosecution Evidence* Jianping Mei New York University Guojun Wu University of Michigan Chunsheng Zhou Peking University This Version: April 7, 2004 * We are grateful to helpful discussions with Franklin Allen and Wei Xiong. Mei is from Department of Finance, Stern School of Business, New York University, 44 West 4th Street, New York, NY 10012-1126; (212) 998-0354; jmei@stern.nyu.edu. Wu is from School of Business, University of Michigan, 701 Tappan Street, Ann Arbor, MI 48109; Phone: (734) 936-3248; Fax: (734) 936-0274; Email: gjwu@umich.edu. Zhou is from Guanghua School of Management, Peking University, Beijing 100871, China; Email: zhoucs@gsm.pku.edu.cn. We also thank Bin Liu, Jiaqi Tang and Xuewu Wang for able research assistance. Zhou acknowledges generous financial support from the National Science Foundation of China (grant # 70325001/G0206)